Types of Car Insurance

car-insuranceWhen it comes to insuring your car, there are plenty of different types of policy available to suit your circumstances. It's worth taking the time to understand each kind of insurance policy that's on offer to ensure that you don't end up paying more than you really need to.

Third Party Only Car insurance

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This is the most basic kind of cover that an insurance provider will offer. As the name suggests, third party only car insurance will only cover any damages incurred to other people's property in an incident where the fault is deemed to be with the covered driver. It will also cover the costs for any personal injuries sustained by other drivers or passengers in your car.

Third party is the minimum level of cover legally required to allow you to drive on the UK's roads. However, it has significant limitations. For example, it won't cover you for any repairs for your own vehicle after an accident, or if it is stolen or damaged in any other way.

Traditionally, basic third party only insurance has been a very popular option for young drivers who have just passed their test and are looking to keep costs down. However, this trend has caused insurance providers to increase their prices on this kind of cover as statistically young drivers are more likely to crash.

Therefore, if you've just passed your test, you may find this kind of policy disproportionally expensive. In which case, it's worth looking at more comprehensive kinds of cover which may be relatively similar in price.

Third Party car insurance is suitable for:

  • Drivers with a car worth less than £1000
  • Young drivers (but not necessarily those who have only just passed their test) on a budget
  • Drivers living in a high risk area (high levels of crime and/or road accidents)

Third Party, Fire & Theft

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Rather self-explanatory, this one! As well as affording the same kind of cover as third party car insurance, this policy will also pay out if your vehicle is stolen or set on fire.

Always ensure that you check the excess charges for this kind of policy, as they can often be quite steep.

Third Party car insurance is suitable for:

  • Drivers with a car worth less than £1500
  • Drivers living in a high risk area

Fully Comprehensive

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This category of insurance policy offers the greatest level of cover available and therefore the greatest peace of mind for its holder. While the specifics vary depending on your chosen provider, the general premise is that this kind of policy should cover you for any feasible eventuality such as an accident or any misfortune that can happen to your car.

If you crash your car under this policy you will be covered regardless of fault. All damages to all persons and vehicles involved should be covered. The same goes for incidents involving fire and theft. In addition, fully comprehensive insurance covers things like vandalism and accidental damage caused to your car when you aren't in it. For example, if someone bumped your car while it was parked and then drove off, you would still be covered for that situation.

However, don't make the mistake of assuming that all fully comprehensive policies are the same. As many providers will offer additional features. For example, Hastings Direct Car insurance offer customers cover for legal expenses, breakdown cover as well as courtesy cars to use while the repair work is carried out.

While traditionally the most expensive form of cover, fully comprehensive is often heavily discounted by some providers as they believe that a driver who chooses it cares more about their car than one who chooses third party only and will therefore be a more careful driver.

Fully Comprehensive car insurance is suitable for:

  • Drivers with a car worth more than £1500
  • Drivers with several years of accident-free driving under their belt
  • Drivers looking for peace of mind by being covered for any eventuality

If you have any questions, please ask below!